Yiqilian Technology, the Chinese internet advertising firm, has just published new predictions highlighting that Chinese mobile advertisers will spend $22.1bn in 2016, ranking second behind the US. The data shows that the country now has 620m mobile Internet users, driving the growth of the mobile advertising industry in the country.
Yiqilian Technologies publishes new findings on China’s mobile ad market
The core driver of the Chinese mobile business is still focused on mobile hardware, but mobile advertising, mCommerce and video and payment services are already yielding strong profitability.
Yiqilian says that the mobile Internet ad business in China is made up of the large Internet companies, which collect user data, as well as the professional mobile advertising services that provide mobile advertising, marketing and promotion services, such as Yiqilian itself, but also the eCommerce suppliers which are driving much of the mobile advertising demand, and lastly the traditional media companies.
As China reaches its one-millionth app made, with around 100-300 being launched daily, the app market is of particular importance. App developers need to create a cash flow, whilst larger enterprises are utilising mobile ads to drive consumer attention. This has resulted in a steady increase in app ad demand year-on-year.
Ad formats on mobile and in-app vary strongly from image banners, full screen image ads, video ads, native, rich media and other formats.
The company says that Chinese mobile advertisers have been accelerating the industry’s growth more strongly since 2013. Demand for mobile ads includes functions such as brand exposure, app downloads, app market ranking, online interaction and registration as well as promo activities.
Mobile games have been particularly successful in the country and heavily rely on ads to catch user attention and reengage existing players. China’s mobile gaming market is set to reach RMB64 billion this year.
The threshold for mobile games is on the rise and demand for effective channels and new products is more important than ever. As global distribution thresholds for games have begun to decline recently, mobile ad companies are necessary to push Chinese game distribution oversees as well as on its home market.
In addition, the company suggests that full programmatic buying is the preferred mode for advertisers to purchase digital adverts. Programmatic enables ads to be more precise, cost effective and efficient.